MICHAEL MAY et al., Plaintiffs and Appellants, v. CITY OF MILPITAS et al., Defendants and Respondents; SCS DEVELOPMENT CO. et al., Real Parties in Interest and Respondents.
No. H038338
Sixth Dist.
July 16, 2013
217 Cal.App.4th 1307
COUNSEL
Lozeau Drury, Richard T. Drury and Michael R. Lozeau for Plaintiffs and Appellants.
Sheppard, Mullin, Richter & Hampton, David P. Lanferman, Arthur J. Friedman, Alexander L. Merritt; Rutan & Tucker and David P. Lanferman for Defendants and Respondents and for Real Parties in Interest and Respondents.
OPINION
ELIA, J.—This case concerns resolution No. 8132 (Resolution) adopted by respondent City Council of the City of Milpitas (City Council). The Resolution approved amendments to a site development permit, a tentative map, and a conditional use permit for the Citation Residential Project to allow the development of 732 condominium units. After the adoption of the Resolution, respondent City of Milpitas (City) filed a notice of exemption (NOE). Appellants Michael May and Carpenters Local Union No. 405 sought to challenge the approvals on the ground that an environmental impact report (EIR) was not prepared in compliance with the California Environmental Quality Act (CEQA) (
We conclude that the trial court‘s order sustaining the demurrer was proper since appellants’ allegations and judicially noticed documents show that the CEQA challenge is necessarily time-barred under
I
Procedural History
On December 7, 2011, appellants filed a verified petition for a peremptory writ of mandate and complaint for declaratory and injunctive relief (petition) against the City and its City Council. The petition seeks to set aside the City Council‘s November 1, 2011 Resolution approving site development permit amendment SA11-0005, major tentative map amendment No. TM11-0001, and conditional use permit amendment No. UA11-0008 for the Citation Residential Project (Project). The petition challenges the determination that the changes to the Project were exempt from CEQA review.
The petition includes the following allegations. On June 3, 2008, the City certified a programmatic EIR for the transit area specific plan (TASP). “The
The petition states that new information of substantial importance on these matters has “come to light since the City‘s adoption of the TASP EIR.” It alleges that the City erred in relying on CEQA Guidelines section 15168, subdivision (c)(2), to exempt the project from CEQA. It also asserts that the City may not invoke the exemption from CEQA described by CEQA Guidelines section 15061, subdivision (b)(3).
The petition avers: “Where, as here, a specific plan EIR has admitted significant unmitigated environmental impacts, then later phases of the project require supplemental environmental impact reports to determine if any feasible mitigation measures can be imposed to reduce the impact.” It charges that the City was claiming, based on CEQA Guidelines section 15168, subdivision (c)(2), that “the Project is ‘exempt’ entirely from CEQA based on a conclusion that the Project was previously analyzed under the TASP EIR” and was “ignoring the fact that Project-specific hazardous contamination, air quality issues and traffic issues were not analyzed in the 2008 TASP EIR and new significant information ... has arisen since the certification of that EIR, factors which require preparation of an Initial Study and [a] supplemental CEQA document ....”
Appellants’ petition requests, among other relief, a peremptory writ of mandate directing respondents to set aside the Project approval, the notice of exemption, and other approvals or grants related to the Project “unless and
Respondents City and City Council and real parties in interest2 demurred on the ground that the action was time-barred under
Appellants opposed the demurrer, arguing that the action was not untimely. They maintained that, since the City‘s NOE relied upon CEQA Guidelines sections 15168, subdivision (c)(2), and 15061, subdivision (b)(3), their petition was subject to a 35-day statute of limitations under
Appellants asked the trial court to take judicial notice of certain documents, including but not limited to the City Council‘s Resolution adopted on November 1, 2011, and the City‘s NOE, dated November 3, 2011.
The City Council‘s Resolution expressly stated that the approvals were for the Citation Residential Project to allow development of 732 condominium units located at 1200 Piper Drive. The Resolution determined that the Project was exempt pursuant to CEQA Guidelines section 15168, subdivision (c)(2), because “the project is consistent with the certified EIR for Transit Area Specific Plan adopted on June 3, 2008 by the City Council.” The City Council‘s Resolution additionally determined that the Project was exempt pursuant to CEQA Guidelines section 15061, subdivision (b)(3), because there was “no possibility that the activity in question may have a significant effect on the environment ....”
The City‘s NOE described the Project as follows: “A request to amend the previously approved project to allow a fifth story and to replace a ‘wrap’ condominium unit building with townhomes.” It stated that the project was located at 1200 Piper Drive. The preprinted NOE form specified a number of exempt statuses and contained the direction to “check one” of the boxes. On the City‘s NOE, the box for “Categorical Exemption[s]” was checked and
As to the “[r]easons why project is exempt,” the City‘s NOE explained: “The project is consistent with the certified EIR for the Transit Area Specific Plan adopted on 6/3/08. The project can also be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.” This description corresponds with the CEQA Guidelines sections specified on the form.
The trial court granted appellants’ request for judicial notice but sustained the demurrer. It concluded that
On March 29, 2012, judgment was entered in favor of respondents.
II
CEQA Background
A. Applicability of CEQA
“When it enacted CEQA, the Legislature imposed certain limitations on its scope. CEQA applies only to activities that meet the definition of a
“A CEQA ‘project’ falls into one of three categories of ‘activity which may cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment ....’ (
Thus, “[t]he first step in CEQA analysis, of course, is [a determination] whether the activity in question amounts to a ‘project.’ (Muzzy Ranch Co. v. Solano County Airport Land Use Com., supra, 41 Cal.4th 372, 380 ....)” (Save the Plastic Bag Coalition v. City of Manhattan Beach (2011) 52 Cal.4th 155, 171, fn. 7 [127 Cal.Rptr.3d 710, 254 P.3d 1005].) An activity is not a “project” if it has absolutely no potential to “cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.” (
B. Exemptions from CEQA
Once a lead agency determines that an activity falls within the statutory definition of a “project,” it must then determine whether the project is nevertheless exempt from CEQA. (CEQA Guidelines, § 15061, subd. (a).) In CEQA itself, “the Legislature specifically exempted certain activities from
CEQA also authorizes the adoption of regulatory exemptions for classes of projects. (
If a local agency, which is “any public agency other than a state agency, board, or commission” (
C. Determination of Significant Environmental Effect
“If the project is not exempt, the lead agency takes the [next] step and conducts an initial study . . . to determine whether the project may have a significant effect on the environment.” (CEQA Guidelines, § 15002, subd. (k)(2); see
“If there is substantial evidence, in light of the whole record before the lead agency, that the project may have a significant effect on the environment, an environmental impact report shall be prepared.” (
“If a local agency approves or determines to carry out a project that is subject to [CEQA],” it must “file notice of the approval or the determination,” otherwise known as a notice of determination (NOD), indicating “whether the project will, or will not, have a significant effect on the environment” and “whether an environmental impact report has been prepared pursuant to [CEQA].” (
D. Limitations Periods Under Section 21167
“[CEQA] seeks to ensure that public agencies will consider the environmental consequences of discretionary projects they propose to carry out or approve. On the other hand, the Act is sensitive to the particular need for finality and certainty in land use planning decisions. Accordingly, the Act provides ‘unusually short’ limitations periods [citations] after which persons may no longer mount legal challenges, however meritorious, to actions taken under the Act‘s auspices.” (Stockton Citizens, supra, 48 Cal.4th at p. 488.) In general, “CEQA establishes and emphasizes public notification of an agency‘s action or decision as the event triggering the shortest applicable limitations periods for lawsuits alleging noncompliance with the statute.” (Id. at p. 501, italics omitted.) Ordinarily, “such notification, provided in the form and manner specified by the statute, sufficiently advises interested persons of the action or decision so as to trigger the limitations period for lawsuits asserting that the agency has proceeded in violation of CEQA. [Citation.]” (Id. at p. 502.)
“CEQA‘s purpose to ensure extremely prompt resolution of lawsuits claiming noncompliance with the Act is evidenced throughout the statute‘s procedural scheme.” (Stockton Citizens, supra, 48 Cal.4th at p. 500.) “[A] statute of limitations applies regardless of the merits of the underlying lawsuit.” (Id. at p. 501, fn. omitted; see id. at p. 426.)
III
Analysis
A. Standard of Review
The party against whom a complaint has been filed may “object by demurrer on the ground that ‘[t]he pleading does not state facts sufficient to constitute a cause of action,’ including that the claims are barred by the applicable statutes of limitations. (
“If the court sustained the demurrer without leave to amend, as here, we must decide whether there is a reasonable possibility the plaintiff could cure the defect with an amendment. [Citation.]” (Schifando v. City of Los Angeles (2003) 31 Cal.4th 1074, 1081 [6 Cal.Rptr.3d 457, 79 P.3d 569].) “The plaintiff has the burden of proving that an amendment would cure the defect. [Citation.]” (Ibid.)
B. Appellants’ CEQA Claims Are Time-barred
1. Government Code Section 65457
In 1984, Government Code former section 65453 was repealed (Stats. 1984, ch. 1009, § 17, p. 3491) and
The recent decision of Concerned Dublin Citizens v. City of Dublin (2013) 214 Cal.App.4th 1301 [154 Cal.Rptr.3d 682] is the first published case to apply
In this case, the petition‘s allegations essentially assert that a supplemental EIR is required because substantial changes have occurred with respect to the circumstances under which the Project is being undertaken and new information has come to light that was not available when the TASP was certified.
2. Resolution Factually Invoked Government Code Section 65457‘s Exemption
When it granted further approvals with respect to the Project by resolution, the City Council in essence factually invoked
In claiming that exemption, the Resolution referred to
The City Council‘s Resolution also referred to
3. Government Code Section 65457‘s Statute of Limitations
In their petition, appellants in effect contend that further environmental review was required because events specified in
In Stockton Citizens, supra, 48 Cal.4th 481, the court stated: “A statute of limitations ‘“necessarily fix[es]” a “definite period[] of time” [citation], and hence operates conclusively across-the-board. It does so with respect to all causes of action, both those that do not have merit and also those that do. [Citation.] That it may bar meritorious causes of action as well as unmeritorious ones is the “price of the orderly and timely processing of litigation” [citation]—a price that may be high, but one that must nevertheless be paid.’ [Citations.]” (Id. at p. 499.) The court indicated that the timeliness of a lawsuit should not be confused with its merits. (Id. at p. 501.) The court stated that “a statute of limitations applies regardless of the merits of the underlying lawsuit.” (Ibid., fn. omitted.) In Committee for Green Foothills, supra, 48 Cal.4th 32, the Supreme Court stated that “a merits-based inquiry is irrelevant to a statute of limitations analysis.” (Id. at p. 54.)
Consequently, when the petition was filed on December 7, 2011, it was already time-barred because the 30-day statute of limitations had run. It affirmatively appears from the face of the petition together with the judicially
C. Appellants’ Contentions
1. Interpretation of Government Code Section 65457, Subdivision (b)
Appellants insist that their petition is not “[a]n action or proceeding alleging that a public agency has approved a project pursuant to a specific plan without having previously certified a supplemental environmental impact report for the specific plan, where required by [
To some extent, these arguments conflict with the factual allegations of their petition and the judicially noticed documents. As indicated, for the purpose of assessing the petition‘s sufficiency to withstand a demurrer, we accept as true all well-pleaded factual allegations and we consider judicially noticed facts, and we disregard conclusions of law and allegations contrary to those judicially noticed facts. (Committee for Green Foothills, supra, 48 Cal.4th at p. 42; Stanton v. Dumke (1966) 64 Cal.2d 199, 201–202 [49 Cal.Rptr. 380, 411 P.2d 108].) The petition, the Resolution, and the NOE reflect that the City Council had previously approved the residential development and, in approving the proposed amendments, the City Council found that the Project was consistent with the TASP for which an EIR had been certified.
Furthermore, appellants’ contentions ignore the broad definition of “project” and the use of “tiering” in the preparation of environmental documents. As explained in the
A program EIR may serve as a first-tier EIR. (See
The essential goal of the 1979 bill (Assem. Bill No. 1151 (1979–1980 Reg. Sess.)) enacting
The enrolled bill report prepared by the Department of Housing and Community Development explained the bill‘s CEQA exemption for residential developments: “If an EIR has been prepared and certified in connection with a specific plan, no new EIR or negative declaration would be required for any residential project, unless after adoption an event occurs that changes the conditions under which the original EIR was prepared. After the supplemental EIR has been prepared, projects undertaken pursuant to the specific plan would again be exempt from a separate EIR. Any action alleging that a public agency has approved a project pursuant to a specific plan without having adopted a supplemental EIR when required must be commenced within 30 days of the public agency‘s decision to approve a project pursuant
The enrolled bill report prepared by the Resources Agency reported that the agency and the Office of Planning and Research had “opposed the outright exemption.” (Resources Agency, Enrolled Bill Rep. on Assem. Bill No. 1151 (1979–1980 Reg. Sess.) Sept. 18, 1979, p. 1.) It indicated that
Prior to enactment of
The foregoing legislative history discloses that the very purpose of
Thus, whereas approval of a nonresidential development project undertaken to implement and consistent with a specific plan for which a program EIR was certified, without preparation of any further environmental document, may lead to the filing of an NOD that would trigger the 30-day statute of limitations under
2. Statute of Limitations Under Section 21167, Subdivision (d)
Appellants maintain that an “NOE serves no purpose other than to establish a 35-day limitations period” under
Appellants nonetheless attempt to bring their action within the scope of
In response to the mandate of
Appellants also baldly assert that
In Stockton Citizens, unlike this case, there was no dispute that
“‘It is axiomatic that language in a judicial opinion is to be understood in accordance with the facts and issues before the court. An opinion is not authority for propositions not considered.’ (Chevron U.S.A., Inc. v. Workers’ Comp. Appeals Bd. (1999) 19 Cal.4th 1182, 1195 [81 Cal.Rptr.2d 521, 969 P.2d 613].)” (Kinsman v. Unocal Corp. (2005) 37 Cal.4th 659, 680 [36 Cal.Rptr.3d 495, 123 P.3d 931].)
We have no sound basis for concluding that the mere filing of an NOE makes
3. CEQA Guidelines Section 15062
Appellants alternatively argue, based on
“Generally, the same rules of construction and interpretation which apply to statutes govern the construction and interpretation of rules and regulations of administrative agencies. [Citation.]” (Cal. Drive-in Restaurant Assn. v. Clark (1943) 22 Cal.2d 287, 292 [140 P.2d 657].) Courts do not examine statutory language “in isolation, but in the context of the statutory framework as a whole in order to determine its scope and purpose and to harmonize the various parts of the enactment.” (Coalition of Concerned Communities, Inc. v. City of Los Angeles (2004) 34 Cal.4th 733, 737 [21 Cal.Rptr.3d 676, 101 P.3d 563].) We are required to construe a provision “with reference to the entire scheme of law of which it is part so that the whole may be harmonized and retain effectiveness” (Clean Air Constituency v. California State Air Resources Bd. (1974) 11 Cal.3d 801, 814 [114 Cal.Rptr. 577, 523 P.2d 617]) and to avoid an interpretation that renders language a nullity (Williams v. Superior Court (1993) 5 Cal.4th 337, 357 [19 Cal.Rptr.2d 882, 852 P.2d 377]).
When read in context, it is apparent that
4. Resolving Conflict Between Statutes of Limitations
If the filing of an NOE relying in part on
D. Estoppel and Leave to Amend
“‘Estoppel must be pleaded and proved as an affirmative bar to a defense of statute of limitations.’ [Citation.]” (Ard v. County of Contra Costa (2001) 93 Cal.App.4th 339, 348 [112 Cal.Rptr.2d 886].) The burden of showing that the defective pleading may be cured by an amendment pleading estoppel rests squarely on appellants. (See Blank v. Kirwan (1985) 39 Cal.3d 311, 318 [216 Cal.Rptr. 718, 703 P.2d 58].) They must show in what manner they can amend the petition and how such amendment will change its legal
It is a “venerable principle that ‘[o]ne cannot justly or equitably lull his adversary into a false sense of security, and thereby cause his adversary to subject his claim to the bar of the statute of limitations, and then be permitted to plead the very delay caused by his course of conduct as a defense to the action when brought.’ [Citation.]” (Lantzy v. Centex Homes (2003) 31 Cal.4th 363, 383 [2 Cal.Rptr.3d 655, 73 P.3d 517].) The doctrine of equitable estoppel addresses “‘the circumstances in which a party will be estopped from asserting the statute of limitations as a defense to an admittedly untimely action because his conduct has induced another into forbearing suit within the applicable limitations period . . . .’ [Citation.]” (Ibid.)
“Generally speaking, four elements must be present in order to apply the doctrine of equitable estoppel: (1) the party to be estopped must be apprised of the facts; (2) he must intend that his conduct shall be acted upon, or must so act that the party asserting the estoppel had a right to believe it was so intended; (3) the other party must be ignorant of the true state of facts; and (4) he must rely upon the conduct to his injury. [Citations.]” (Driscoll v. City of Los Angeles (1967) 67 Cal.2d 297, 305 [61 Cal.Rptr. 661, 431 P.2d 245].) The detrimental reliance must be reasonable. (See Lantzy v. Centex Homes, supra, 31 Cal.4th at p. 384; Vu v. Prudential Property & Casualty Ins. Co. (2001) 26 Cal.4th 1142, 1152–1153 [113 Cal.Rptr.2d 70, 33 P.3d 487].) “The defendant‘s statement or conduct must amount to a misrepresentation bearing on the necessity of bringing a timely suit. . . . [Citations.]” (Lantzy v. Centex Homes, supra, 31 Cal.4th at p. 384, fn. 18.)
“As [the California Supreme Court] long ago explained in McKeen v. Naughton (1891) 88 Cal. 462, 467 [26 P. 354], ‘“in order to work an estoppel,” a representation “must generally be a statement of fact. It can rarely happen that the statement of a proposition of law will conclude the party making it from denying its correctness, except when it is understood to mean nothing but a simple statement of fact.” [Citation.]‘” (Steinhart v. County of Los Angeles (2010) 47 Cal.4th 1298, 1315 [104 Cal.Rptr.3d 195, 223 P.3d 57].) “[I]n the absence of a confidential relationship . . . where the material facts are known to both parties and the pertinent provisions of law are equally accessible to them, a party‘s inaccurate statement of the law or failure to remind the other party about a statute of limitations cannot give rise to an estoppel.” (Jordan v. City of Sacramento (2007) 148 Cal.App.4th 1487, 1496 [56 Cal.Rptr.3d 641].)
Appellants have not identified any misrepresentation of fact made by respondents. Further, neither the City Council‘s Resolution nor the City‘s NOE cited to any statute or CEQA regulation specifying a 35-day limitations period. Both documents clearly indicated that the project was a residential development and was exempt because it was consistent with the certified EIR for the transit area specific plan adopted on June 3, 2008. The mere fact that the City filed an NOE or the NOE failed to cite
As noted by appellants, a document labeled “CEQA Document Declaration” was filed in the Santa Clara County Clerk-Recorder‘s Office. It merely indicated that $50 had been paid for the NOE and the notice would be posted for 35 days commencing November 11, 2011. This document does not lend support for estoppel since it would have been unreasonable to rely on that information to determine the applicable limitations period.16
“[L]eave to amend is properly granted where resolution of the legal issues does not foreclose the possibility that the plaintiff may supply necessary factual allegations. [Citation.]” (City of Stockton v. Superior Court (2007) 42 Cal.4th 730, 747 [68 Cal.Rptr.3d 295, 171 P.3d 20].) Appellants have not shown, however, there is any reasonable possibility of amending the petition to show respondents are estopped from invoking
DISPOSITION
The judgment is affirmed.
Rushing, P. J., and Premo, J., concurred.
